Conventionally, location aware fraud detection has relied on a payment method being collocated with an identified mobile phone. As such, when a customer places an order, the vendor, e.g., the bank issuing the credit card used in the transaction, can check the location of a phone associated with the vendor account. By checking the location of the mobile phone, it can be assumed that where the phone is close to the credit cards being used and where the phone is associated with the user issued the credit card, that the credit card is likely not being used fraudulently. Vendors can use these traditional systems to “verify” the identity of the financial card user by their proximity to the financial cards themselves. For example, where a party pays for movie tickets at a theatre by credit card, the credit card company can query the location of the mobile phone issued to the “party”. Where the phone is collocated at the movie theatre, it can be deduced that the party using the credit cards is the authorized user. In contrast, where the phone is located in another city, it can be deduced that the party using the card is doing so fraudulently.
These conventional systems rely on associations between a user and a payment method, e.g., a credit/debit card. These systems can fail where a mobile phone is not owned by a vendor customer, e.g., there is no mobile phone to associate with a credit/debit card. Further, even where a mobile phone is associated with a vendor customer account, if the vendor customer doesn't bring the mobile phone with them, the verification system can fail even though there is no fraud occurring. Additionally, fraud often is associated with rapid use of a compromised vendor account, and conventional systems may be circumvented by registering a disposable or temporary mobile phone to a compromised account to circumvent the conventional fraud technology.
The above-described deficiencies of conventional location aware fraud detection is merely intended to provide an overview of some of problems of current technology, and are not intended to be exhaustive. Other problems with the state of the art, and corresponding benefits of some of the various non-limiting embodiments described herein, may become further apparent upon review of the following detailed description.